Trump Ex-Im Bank nominee will likely be blocked

Scott Garrett, President Donald Trump's pick to lead the Export-Import Bank, will likely be blocked by bipartisan opposition after he struggled to convince lawmakers that he should run an agency he once tried to kill in Congress.

Garrett's fate was all but sealed Tuesday when Sen. Mike Rounds (R-S.D.) said he would oppose the former congressman's confirmation when it comes up for a vote at the Senate Banking Committee on Dec. 19. The panel has 12 Republicans and 11 Democrats, and all the Democrats are expected to oppose Garrett.

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"I believe him to be a proponent of the abolition of the bank rather than a reformer of the bank," Rounds told POLITICO. "I'm looking for reformers, not abolitionists."

Rounds had raised concerns that small contractors in his state could be hurt if their larger customers lost access to financing. U.S. companies rely on the agency to provide loan guarantees to the foreign buyers of American exports.

If Garrett's nomination were blocked or withdrawn, it would be a major victory for companies and manufacturing groups, including Boeing and the National Association of Manufacturers. They have fought to stop his Senate confirmation based on his record of trying to shut down the bank while serving in Congress.

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Before losing reelection in his New Jersey district last year, Garrett said the bank "embodies the corruption of the free enterprise system." As he tried to save his nomination in recent months, he struck a less aggressive tone and pledged publicly to keep the bank running.

Garrett's attempts to shore up support fell flat, and opposition to his nomination could grow before next Tuesday's vote.

Other Republicans on the committee said they had not yet made up their minds.

Sen. Tim Scott (R-S.C.), whose vote is one of the most closely watched on the panel, represents a state that's home to plants operated by Boeing and GE, two of the bank's most prominent beneficiaries. He has raised concerns with Garrett's record but has not announced how he would vote.

"My attention's all on the tax reform package," Scott said in an interview today. "I'm sure I'll have enough time before Tuesday to come to a decision."

Asked if Garrett will drop out or if the White House is looking for a new nominee, an administration official told POLITICO, "We plan on having a vote."

The administration has warned for months that if Garrett failed to advance then GOP lawmakers critical of the bank would hold up the confirmation of other nominees to head the agency. Sens. Pat Toomey (R-Penn.) and Richard Shelby (R-Ala.) have threatened to derail other Ex-Im appointees if Garrett were not cleared.

Four less controversial nominees for the bank's board are also scheduled for a committee vote on Dec. 19, and they're expected to move forward. Their confirmation would help the bank's board regain a quorum that's needed to approve transactions worth more than $10 million.

Shelby said on Tuesday that if Garrett were blocked, "a lot of us will probably vote against all of them," but he conceded that "we're probably outliers — the minority."

In an interview Friday, White House director of legislative affairs Marc Short declined to say what the administration would do if Garrett fell short of the necessary votes in committee.

"There are some who look at it myopically and will say, 'Here’s your challenge in committee,'" Short said. "But I think focusing on the committee in and of itself doesn’t factor in other members of Congress who will oppose a different nominee."

Underscoring the wedge that the Export-Import Bank has driven between Republicans, manufacturers on Tuesday applauded Rounds for announcing his opposition, while conservative groups went on the attack.

“Sen. Rounds is placing special interests and lobbyists above the interests of the American people," Club for Growth President David McIntosh said. "A vote against Scott Garrett is a vote for business as usual in Washington. Rounds’ opposition will serve to protect the swamp and its creatures rather drain it.”